The Indian stock market staged a broad-based rebound on Monday, August 4, snapping a two-day losing streak on the back of positive global cues and a softer US dollar.
The Sensex climbed 419 points, or 0.52%, to close at 81,018.72, while the Nifty 50 advanced 157 points, or 0.64%, to settle at 24,722.75.Broader market indices outperformed the benchmarks. The BSE Midcap index surged 1.11%, while the Smallcap index gained 0.76%.
Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Tuesday, 5 August:
Taj GVK Hotels & Resorts (current market price: ₹432.20)
- Why it’s recommended: Taj GVK Hotels & Resorts, TAJGVK, is a company that owns, operates, and manages hotels, palaces, and resorts under the Taj brand. Strong demand recovery in this stock from lower levels and the rebound from demand zones supports price stability and growth potential. With prices reviving from lower levels backed by best quarterly performance have induced volumes picking up and thus leading to we can expect the momentum to continue.
- Key metrics:
- P/E: 22.90
- 52-week high: ₹528.10,
- volume: 592.81K.
- Technical analysis: Support at ₹390, resistance at ₹550.
- Risk factors: Dependence on trends in hospitality sector and travel trends affect the price volatility.
- Buy at: CMP and dips to ₹415.
- Target price: ₹475-495 in 1 month.
- Stop loss: ₹405.
Tata Investment Corp (current market price: ₹6,976)
- Why it’s recommended: Strong decline into the TS & KS region led to some rounding pattern formation has led to some upward bias. Also Signs of reversal from oversold zones signal potential upside. Demand at lower levels showcases optimism for recovery in coming sessions. The daily charts indicate that the volume-based rise seen in the last few sessions augurs well for the prices.
- Key metrics:
- P/E: 124.93,
- 52-week high: ₹8074.25,
- volume: 246.28K.
- Technical analysis: Support at ₹6,500, resistance at ₹7,900.
- Risk factors: Declining revenue and profits, as well as a decrease in operating profit margin.
- Buy at: CMP and dips to ₹6,800.
- Target price: ₹7,400-7,650 in 1 months.
- Stop loss: ₹6,750.
TVS Motor Co (current market price: ₹2,942.20)
- Why it’s recommended: Gradual accumulation at critical support levels highlights strong investor interest, supported by consistent growth in revenue. A healthy Q1 in FY 2025-26 has now prompted a possibility of further upside. Steady higher lows in last few days with a thrust above value area resistance around 2910 suggests more upside possibility.
- Key metrics:
- P/E: 48.01,
- 52-week high: ₹2,960.30,
- Volume: 1.94M.
- Technical analysis: Support at ₹2,750, resistance at ₹3,300.
- Risk factors: Competition in the auto industry, and regulatory issues.
- Buy at: CMP and dips to ₹2,870.
- Target price: ₹3,125-3,185 in 1 month.
Stop loss: ₹2,840.
Stock market recap | 4 August
On Monday, 4 August, India’s benchmark equity indices staged a strong rebound, with the Sensex climbing from its intraday low and the Nifty inching closer to the 24,700 mark. The Sensex ended 447.16 points higher at 81,047.06, while the Nifty closed at 24,726.90, up 161.55 points. The rally was driven by gains in metal and auto stocks, buoyed by positive regional cues and supportive currency dynamics.
Auto stocks led the advance, with the Nifty Auto index rising 1.1% following upbeat quarterly earnings from TVS Motor Company and a 21% year-on-year jump in July dispatches for Hero MotoCorp, which gained over 2%.
Metals also posted strong gains, with the Nifty Metal index up 1.6% as a weaker US dollar boosted the appeal of commodities among overseas buyers. Fourteen of the index’s 15 constituents ended in the green. Sector heavyweights including Bharat Electronics, Tata Steel, Eicher Motors, and Hindalco rallied up to 4%, capping off a broad-based session that reflected resilient investor sentiment.
Outlook for Trading
Broader indices managed to absorb last week’s profit booking, enabling a rebound. However, the recovery lacks conviction, with markets struggling to sustain upward momentum. Uncertainty around global cues—particularly the ongoing Trump tariff rhetoric—continues to inject volatility, keeping investors guessing about what’s next.
The rebound, partly supported by the RBI’s monetary policy backdrop, helped lift sentiment temporarily, but intermittent declines have continued to test bullish resolve. Market momentum remains subdued, especially with persistent weakness in the Bank Nifty weighing on confidence. Since breaking below its trend channel, the index has faced sustained bearish pressure, suggesting further downside risk as we head into the final trading session of the week.
As the Q1 earnings season gains pace, investor focus will remain on corporate results. In a market increasingly swayed by unpredictable, ad hoc triggers, volatility is likely to persist in the near term.
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Sentiment continues to swing, driven by a fast-changing landscape. This makes risk management more important than ever. That said, there is still visible value discovery in mid- and small-cap stocks, indicating pockets of bullishness. Meanwhile, the Trump tariff saga has kept global markets on edge. In the absence of clarity, the Nifty is likely to oscillate in a range between 24,500 and 25,000 in the coming days.
